Oil And Gas

The petroleum industry includes varied and extensive operations required to supply increasing quantities of refined petroleum products and natural gas that are essential for the economic progress of an expanding population Petroleum has provided the power for the transformation from the "horse and buggy days" to the age of jets and space exploration, and for the remarkable improvement in productivity per worker in agriculture and manufacturing. Without increasing quantities of oil and gas, the world would face painful readjustments to more expensive forms of energy and lower standards of living Petroleum operations start with exploration, development, and production activities that supply the basic crude oil and natural gas Pipelines, ships, barges, and trucks first transport the raw materials to processing centers and then move the finished products to the ultimate consumers. Processing plants extract liquids from natural gas and refineries convert crude oil into a wide range of products These products include transportation fuels, feedstocks for conversion into numerous products (such as fabrics, rubber, and plastics), light fuels for heating, lubricants, and heavy residual materials (industrial fuel oil, asphalt, and coke) The final activity of wholesale distribution and retail marketing moves products into millions of homes, farms, industrial plants, and motor vehicles The use of coal exceeded that of oil and gas until 1946 in the United States and until 1968 in the rest of the world. However, oil and gas have proved to be such convenient and attractively priced fuels that they now supply three-fourths of the total commercial energy (including coal, hydroelectric, and nuclear power) used in North America and more than one-half in the rest of the world. LARGE SCALE OF OPERATIONS By the beginning of 1970, world crude oil production exceeded 43 million bbl daily, -equivalent to more than 2200 million tpy In addition, natural gas and the liquids recovered from processing natural gas supply about 40% as much energy as crude oil Production of oil and gas provide by far the highest value of all mining operations. In the United States, the value of oil and gas production in 1969 of $13 8 billion exceeded the $13 0 billion value for all other minerals The rate of expansion in use of petroleum has been extremely rapid since World War II World crude oil production doubled from 7,500,000 bbl daily in 1946 to more than 15,000,000 bbl daily by 1955 It doubled again to 30,000,000 by 1965, and will double again by 1975 The use of natural gas has increased greatly in the United States and also in Europe, as important discoveries in the Netherlands and the North Sea and technology for moving liquefied natural gas from Africa provided attractively priced supplies